NZ stocks: Stocks end week with broad-based rally

The New Zealand sharemarket ended the week on a high note, up almost 17 points at 1966.08.

"The market was fairly positive from the open," Nigel Scott of ABN Amro said. "Rather than just one stock you had a group of stocks all having a bit of money allocated towards them."

Turnover was 29.65 million shares valued at $107.59 million. Rises beat falls 62-39 in the 137 stocks traded.

The big news of the day was the Commerce Commission clearance of Lion Nathan's bid to buy Montana, which came a little late for much reaction on the exchange. Montana closed up 4c at $3.80, while Lion Nathan gained 1c at $5.32.

Mr Scott said movements in companies such as Auckland Airport, Air New Zealand, Contact, Fletchers, Fisher and Paykel and Telecom could be an indication that buyers were readying themselves for a stock exchange merger with Australia.

"In general I think people are starting to have a bit of a view of the potential of which stocks - if there does become some sort of Australasian indices - may also participate in that index."

"There is a group of stocks there that may come in for some additional interest going forward."

Auckland Airport traded through $3 to close up 7c at $3.05.

Air New Zealand A and B shares continued to climb, up 4c and 6c, respectively.

Contact Energy was up 2c at $2.95 on news it had put its $5.8 million court case with Transpower over losses and constraints rentals on hold.

Fisher and Paykel added 6c, closing at $7.32.

Telecom was up 3c at $5.61, while rival Australian telco Telstra took a battering, down 27c at $7.98.

Natural Gas Corp gained 8c to $1.39 after it announced on Thursday that it had won a big contract off Contact Energy to supply gas to the Chelsea refinery at Birkenhead in Auckland.

INL was also up 14c at $3.30.

Tower continued to see the benefits of this week's positive profit result, up 8c at $5.23.

Fletcher Building closed up 2c at $1.94 in spite of reports by chief executive Alexander Toldte that markets for Fletcher Building are "all over the place" and the company is clearly facing a head wind.

Among the stocks to lose ground, Carter Holt slipped 2c to $1.71 after it said it had been hit hard by a home-building slump in Australia. Fletcher Energy was down 5c at $8.40 after its US associate Capstone Turbines took a tumble.

National Mail fell a further 5c to 38c and is a long way from its $1.33 listing price in March.

- NZPA